Persistent losses! A major LED display manufacturer, listed for 34 years, plans to voluntarily delist.

After the market closed on September 3, *ST Konka A issued an announcement stating that, following deliberation and approval by the company’s board of directors, the company intends to voluntarily withdraw its A-shares and B-shares from trading on the Shenzhen Stock Exchange through a shareholders’ resolution, and upon delisting, will apply to transfer its shares to the delisted‑stock trading platform managed by the National Equities Exchange and Quotations Co., Ltd.

The company will convene its second extraordinary shareholders’ meeting of 2026 on September 14 to deliberate on the proposed delisting. According to relevant regulations, when delisting is initiated via a shareholders’ resolution, the company must request that its shares be suspended from trading starting from the next trading day after the record date for the shareholders’ meeting.

Accordingly, upon application to the Shenzhen Stock Exchange, the company’s shares (stock abbreviations: *ST Konka A, *ST Konka B; stock codes: 000016, 200016) will be suspended from trading effective at the opening of the market on Friday, September 4, until the Shenzhen Stock Exchange removes the shares from listing within five trading days following the date it announces its decision to delist the company. If this delisting proposal fails to pass the shareholders’ meeting, the company will seek resumption of trading from the date the shareholders’ resolution is announced—September 15.

*ST Konka previously announced that given the company’s negative audited net assets at year-end 2025, its shares have already been subject to a delisting risk alert. Under applicable rules, if the company’s audited net assets remain negative at year-end 2026, its shares will be delisted by the Shenzhen Stock Exchange. Following delisting, the company will continue normal production and operations, with no clear plans for major asset restructuring or relisting at this time.

*ST Konka was founded in May 1980, and in 1992, its A‑ and B‑shares were listed on the Shenzhen Stock Exchange. At its peak, Konka TV sales exceeded ten million units annually, securing the top market share and firmly holding the title of “No. 1 color TV manufacturer.” Today, the company’s main businesses include consumer electronics, semiconductors, and PCBs.

The consumer electronics segment comprises color TVs and white goods;

The semiconductor business covers optoelectronics and memory products. Specifically, the optoelectronics division focuses on MicroLED and Mini LED chips, mass transfer technology, and three key display segments, with operating profits derived from the margin between product costs and selling prices once industrialization is achieved. The memory business primarily concentrates on packaging and testing, carrying out processes such as wafer dicing, encapsulation, and final testing;

The PCB business mainly produces metal‑based substrates, thick‑copper products, and high‑layer multilayer boards.

In recent years, *ST Konka A has experienced a steady decline in performance. In 2025, its revenue totaled RMB 9.835 billion, down 11.51% year over year; net profit stood at RMB −12.582 billion, a 237.73% year‑over‑year drop; and net cash flow from operating activities amounted to RMB 1.611 billion, down 1,026% compared to the previous year. In the first half of 2026, *ST Konka A reported revenue of RMB 3.852 billion, a 26.6% year‑over‑year decrease, along with a loss of RMB 173 million.

According to the latest semi‑annual report for 2026, during the first half of the year, the upstream supply chain for the consumer electronics segment remained volatile, driving up product costs. Adjustments to product mix and pricing strategies failed to effectively offset rising cost pressures, further squeezing gross margins. Although operating expenses continued to improve, the resulting reduction in gross profit did not fully cover these costs, leaving operating profit still in the red.

Furthermore, the company’s semiconductor business is still in its early stages of industrialization. While some products have entered commercial production, large‑scale, profitable output has yet to materialize, leaving the entire semiconductor segment operating at a loss.

*ST Konka stated that the current consumer electronics industry faces intense competition, placing significant pressure on business operations; meanwhile, although the semiconductor division has achieved several key breakthroughs in core technologies, overall industrialization remains in its infancy, with economies of scale yet to emerge.

It is reported that Micro‑LED represents the core strategic focus of Konka’s optoelectronics division. Centered around Chongqing Konka Optoelectronics, the company has established a complete technological chain spanning epitaxy, chip fabrication, mass transfer, and module assembly, building a full‑process Micro‑LED production line capable of small‑scale mass production and project‑based supply, reliably delivering P0.12 Micro‑LED displays and 15×30μm specification chips.

In particular, regarding the critical mass‑transfer technology, the company has amassed numerous proprietary patents, ranking first nationwide in the number of such patents. It has successfully mastered the integrated process of “stamp + laser + inspection and repair,” achieving a mass‑transfer yield rate of 99.996% and a red‑light chip yield rate of 98%. Additionally, the company has set up a CNAS‑accredited testing platform, strengthening its R&D foundation.

In response to investor concerns about *ST Konka’s voluntary delisting, the company indicated that going forward, it will further concentrate on developing its core businesses, optimize its business portfolio, tighten cost control, actively promote lean management to reduce costs and boost efficiency, and strive for incremental market growth. At the same time, it will resolutely divest non‑core and non‑strategic assets, focusing resources on core areas, effectively revitalizing existing assets, and improving asset quality. Currently, the company has no plans to inject new assets.